Logistics

GST: Logistics players hope for smooth inter-State movement

Mamuni Das New Delhi | Updated on January 15, 2018 Published on March 30, 2017

BL31_P4_GOODS_

Logistics players hope that Goods & Services Tax (GST) regime will ease inter-State movement, and ensure more online processes. Container train operators have sought a five per cent rate under the GST for all rail-related containerised movement services, an issue that has been agreed upon by the Railway Ministry, and suggested to the GST Council.

“With an aim to increase the share of rail services, a move that will also be environment friendly, ACTO has sought a five per cent slab for container movement and all allied services —large chunk of loading, unloading, packing, repacking, use of reach-stackers, among others,” Kamlesh Gupta, President, Association of Container Train Operators, told BusinessLine.

Shashi Kiran Shetty, Chairman, Allcargo Logistics, wondered about the number of registrations and number of return filings that the logistics companies have to do in the Centre and States. He also hoped that most of the interactions between industry and government will be online with minimal human interventions.

In the road transportation space, firms see reduction in inter-State movement. The Road Transport Ministry, which had made a strong case for removal of check posts in the GST Council meeting, is in the process of forming a committee to ensure the same, as advised by the GST Council.

Raghav Himatsingka, CEO and Founder, Truckola, said, “Currently every State has its own taxation system. Every time a truck passes through a State border it involves heavy taxation and paper work. Warehouse location is kept in accordance with the State taxation and amount of business from a particular area.”

He added that GST will be one without any tax boundaries. While the logistics industry is going to have an instant boost, the advent of the GST Bill will also work in favour of manufacturers as they no longer would have to worry about the cumbersome processes and overheads related to cargo and transportation.

Re-location business is always pan-India or global. Multiple States mean multiple tax structure which has been a great pain for the transportation industry, said Interem Relocations’ CEO Rahul Pillai. “Our sector is eagerly waiting for GST to become a reality. GST will not only bring a transparent method of doing business, but will also help in the overall growth of the sector,” he said.

Meanwhile, SP Singh, Senior Fellow, IFTRT, felt that many stakeholders are nervous about the date of implementation and have started making louder noises about implementation from October 1. He also added that many firms have started increasing prices in advance.

Published on March 30, 2017

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.